April 2020 brings around the regular changes to various payments used throughout employment.
The National Minimum Wage Payments will increase as detailed in the table below:
|Age Group||Hourly Rate|
|18 to 20||£6.45|
|21 to 24||£8.20|
|25 and over||£8.72|
*Apprentices are entitled to the apprentice rate if they’re either: aged under 19, OR aged 19 or over and in the first year of their apprenticeship
The Conservative Government has pledged that National Minimum Wage will rise to £10.50 for all aged 21 and over, by 2024. So expect continued increases!
The minimum annual salary now for a 25 year old will be just over £17,000 which is close to the average salary for a job role that requires professional qualifications; yet the same money could be earned for working a job that requires less experience/qualifications.
Employers need to consider this when attracting new employees but also look at the gap that will naturally decrease to their non-minimum wage workers; these increases and the pledged Conservative Government wage rise will have a significant knock on effect throughout an company’s pay structure.
In addition to the Wage increases the following statutory rates will apply from April 2020:
- Statutory Sick Pay (SSP):
£95.85 – available from day 1 for workers with a DIAGNOSIS of Coronavirus
- Maternity (SMP), Paternity (SPP), Adoption (SAP) and Shared Parental (ShPP):
£151.20 or 90% of the employee’s average weekly earnings, whichever is lower
- Redundancy Pay
Capped at £538